I/O-Link market is estimated to be worth USD 9,458.5 million in 2024 while reaching the value of USD 38,056.7 million by 2034. The market is estimated to grow at a CAGR of 15.0% over the forecast period between 2024 and 2034. The revenue generated I/O-Link market revenue generation in 2023 was USD 8,352.5 million. The industry is estimated to witness a Y-o-Y growth of 13.2% in 2024.
I/O link is used for communication between devices in industrial settings. An I/O link system exchanges data among master device, actuators and sensors. I/O link removes the need of analog signals, providing 100% digital communication. This improves the product quality while ensuring reliability and better accuracy. The removal of analog input cards also result in reduced size control, which eventually lowers cost. As I/O link systems provide bidirectional communication, they reduce the format changing cycle time.
Global I/O-Link Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 8,352.5 million |
| Estimated Size, 2024 | USD 9,458.5 million |
| Projected Size, 2034 | USD 38,056.7 million |
| Value-based CAGR (2024 to 2034) | 15.0% |
In context of device replacement, the device configuration instruction are recorded on the I/O-link master port with the help of data storage mode or back up mode of I/O-link systems. In this scenario, an operator with minimum technical knowledge of these systems, is able to replace the sensor and derive the device configuration of new sensor, which is loaded automatically.
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The expected CAGR for the global I/O-Link market over semi-annual periods, covering 2024 to 2034 is shown in the below table. In the first half (H1) of the year 2023, the business is predicted to grow at a CAGR of 14.8%, followed by a marginally higher growth rate of 14.9% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1, 2023 | 14.8% (2023 to 2033) |
| H2,2023 | 14.9% (2023 to 2033) |
| H1,2024 | 15.1% (2024 to 2034) |
| H2,2024 | 15.2% (2024 to 2034) |
Further, from H1 2024 to H2 2034, the projected CAGR is 15.1% in the first half of 2024, and is expected to grow at 15.2% in the second half of the same year. In the first half (H1) the market showcased an increase of 30 BPS while in the second half (H2), the market witnessed a similar growth of 30 BPS.
Rising Demand for Industry 4.0 is Fostering the Market Demand
I/O link is quite crucial in the modern manufacturing industry as the technology is being used to communicate between the devices used in the production. Factories are leveraging I/O link technology to implement predictive maintenance in order to optimize the maintenance schedules and minimize the unexpected machinery failures.
In automotive industry I/O is heavily used for improving the accuracy and effectiveness of assembly lines. It ensures the accuracy of data transfer from sensors and actuators, which is quite crucial for continuing high quality and safety standards.
On the other hand, the technology is also being utilized in pharmaceutical industry. The production in the pharmaceutical industry needs to be done in the very particular conditions and the need of monitoring is also important. I/O link provides these solutions in the form of stringent monitoring and control of production landscape by offering real-time data on critical parameters such as temperature, humidity and other factors while ensuring regulatory standards compliance.
Meanwhile, the technology is also being implemented in other industries including food & beverage, logistics & warehousing, and energy & utilities, among others. Hence, the numerous applications of I/O link technology in the industry 4.0 produce its high demand in the market.
Lack of Standardization and Restriction of I/O-Link in High Speed or Motion Control Applications is Restraining the Growth of the Market
Lack of standardization and restriction of I/O-Link in high-speed or motion control applications, and issues with the use of basic sensors are expected to limit the market growth. The disadvantage of the I/O-Link is the complexity leading to increased hardware and software design costs such as expensive shielded cabling. On the other hand, consumption of compact machines is also a major factor restraining the market growth.
IO link solution helps to lessen the need for cables and wiring used in industrial machines. Manufacturing industries demand compact and reliable solutions for their operational processes. This leads to the requirement of compact machines on the factory premises. Such compact machines, apart from being small, consume less power and offer better performance as compared with other machinery solutions.
Furthermore, the wiring used in compact machines are not of significant lengths. In such cases, deploying I/O-Link solutions are costlier for industry players. In addition, these machines are efficient and require lesser space than traditional machines and other industrial solutions. Hence, the use of compact machines for industrial automation is one of the major hurdle for the market growth.
I/O-Link Technology to Bring Technological Revolution in Industrial Communication
With the integration capabilities of IO-Link, the technology is considered as an essential element in the landscape of industrial automation. The number of industries that continues to adapt smart manufacturing technologies are expected to increase rapidly. This is due to the I/O-link support for predictive maintenance and condition monitoring in the modern manufacturing environments.
On the other hand, the continuous developments in the I/O-Link master devices with versatile features and lucrative functionalities are expected to open new paths for innovation. Further innovation and developments in the technology are expected to widen the range of integrations of I/O-link to more complex systems, thereby eventually broadening its application areas and highlighting it as a fundamental technology in industrial communication and automation sectors.
Hence, with industries adopting smart manufacturing practices, I/O-Link technology has the potential to revolutionize industrial communication methods. As it brings efficiency, innovation and sustainability in the manufacturing landscape, I/O-Link stands out as an essential component in the evolving setting of industrial communication.
Principal Consultant
The global I/O-Link industry witnessed a CAGR of 11.6% between the years 2019 and 2023. The industry reached a value of USD 5,385.2 million in 2023 from USD 8,352.5 million in 2019.
Though, the pandemic had an impact on the market due to the supply chain disruptions among other factors; the industry still grew at a decent pace. The stability in the automotive sector played a vital role in the growth displayed by the market. The regions such as North America and Western Europe have an established automotive industry which directly impacted on the growth of the I/O-Link.
Additionally, the market is expected to grow at a CAGR of 15.0% during the forecasted period between 2024 and 2034. The market is expected to grow swiftly as it has a potential to reach a value of USD 38,056.7 million in 2034 from USD 9,458.5 million in 2024.
According to IEEE the number of global IoT connections worldwide is anticipated exceed 75 Bn. The primary factor is owing to the ability of this technology to provide various benefits, such as rapid returns on investment, safe commissioning, reliable packaging processes, improved remote diagnosis, and easy availability of the final packaging machines.
These beneficial properties of I/O-Link are expected to propel its demand in the upcoming years. I/O-Link also helps in optimizing the packaging process by setting up bidirectional communication between automation systems and sensors. This is also expected to drive the market growth in the long term.
Tier 1 companies includes companies that are performing as market leader in the I/O-Link market. These companies are providing wide range of solutions and have a very large customer base in the concerned market. The companies in this tier consists around 45%-50% share of global market.
These top vendors focuses on research and development while innovating futuristic technologies in the market. The companies in the bracket includes Siemens, Rosemount (Emerson), Omron Corporation, Phoenix Contact and SICK AG.
Tier 2 companies consists of those mid-sized players that have the market share of 15%-20%. These companies might not provide a very broad portfolio of the I/O-link technology offerings but have a very respectable share in the market. These companies often focus on making partnerships and collaborations in order to maximize their customer portfolio meanwhile this also keeps them in loop about any innovation and product launches.
Although, these companies themselves also try to launch new products in order to broaden their solution portfolio. The companies in the tier are ifm electronic, Balluff GmbH, Baumer and others.
Tier 3 companies are the companies which are still trying to achieve market stability or might be established recently. These companies hold around 30%-35% share in the market. These companies primarily focuses on partnerships and their product portfolio. The companies in the tier include Banner Engineering Corp, Hans Turck GmbH & Co. KG and others.
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The section below includes the industry analysis of I/O-Link market over the countries in North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East & Africa. The analysis describes the country wise analysis that are expected to grow at a high CAGR. The USA in North America is expected to hold the market share around 68% in the year 2034. Meanwhile, India is expected to grow at a high CAGR of 18.0% over the forecasted period
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 14.3% |
| Brazil | 14.0% |
| Germany | 14.6% |
| India | 18.0% |
| China | 15.7% |
Germany’s I/O-Link market is poised to showcase a CAGR of 14.6% between 2024 and 2034, reaching over USD 2,765.4 million by 2034. The market is expected to grow further as per FMI analysis, the adoption rate of remote and maintenance services in Germany for last couple of years is around 47%, quite higher than the global adoption rate, which stands on 30%.
This is due to the very strong industrial sector presence in Germany. Industries such as manufacturing and automotive require high level digital networking between devices in order to go through seamless production. Businesses in the Germany are utilizing I/O-link for digital data transfer and seamless communication ranging from the control level to sensor lever.
For example, German car manufacturing company BMW uses I/O link technology to ensure the precise control of painting and assembly lines in their production plants. Automation solutions company Bosch Rexroth also uses I/O link technology to obtain real-time diagnostics and predictive maintenance data. Siemens on the other hand, integrates I/O link technology into their smart factory solutions to support advanced manufacturing techniques.
North America, led by the USA currently holds around 17.7% share of the global I/O-Link industry in 2024. The market in USA is anticipated to grow at a CAGR of 14.3% throughout the forecast period, amounting to a valuation of USD 6,287.3 million by 2034. This is due to the rising Industrial IoT (IIoT) and consumer IoT connections in the country. As per FMI analysis, by 2023, the number of IIoT connections has exceeded 230 Million while there are more than 550 Million consumer IoT connections in the country.
The presence of a well-established packaging sector in the USA is projected to bolster the North America IO-link technology market growth in the future years. The sector uses automation solutions to initiate multiple packaging processes, such as product shipment, storage, handling, and sorting. IO-link technology also helps in optimizing the packaging process by setting up bidirectional communication between automation systems and sensors.
This technology provides various features, such as rapid returns on investment, safe commissioning, reliable packaging processes, improved remote diagnosis and easy availability of the final packaging machines.
In China, IO-Link is a major enabling force for Industry 4.0 & smart manufacturing. Motivations for flexible manufacturing, efficient production and visibility require that have more diagnostics and data available for analysis and monitoring. Lot-size-one flexible manufacturing requires that sensors and field devices be able to adapt to a rapidly changing set of requirements.
With the parameterization feature of IO-Link slave devices, companies can now send new parameters for production to the sensor on a part by part basis if required. With China being a huge manufacturing base, the demand for I/O link keeps on growing at a considerable CAGR over the forecast period.
The growing IIoT deployments that use IO-Link in smart factories to gather data from production lines and sensors for in-the-moment analytics and decision-making happens to be another major factor driving market growth in the China. The market in China is expected to grow at a high CAGR of 15.7% over the forecasting period.
According to IEEE, the number of IoT connections in China has exceeded 1.8 Bn by the end of 2022. The rising number of connections have established China as global market leader in the IoT industry.
The section contains information about the leading segments in the industry. By component, the hardware segment is expected to grow at a CAGR of 15.0% till 2034. On the other hand, the intralogistics among applications segment is projected to grow at 16.1% CAGR throughout 2034. Among the industries, Automotive & Transportation segment is estimated to grow at CAGR of 16.2% over 2024 to 2034.
| Component | Hardware |
|---|---|
| Value Share (2034) | 43.3% |
According to Honeywell International Inc., the global sensors market was valued at USD 205 Bn in 2023, which directly backs the fact that hardware segment is expected to continue the domination in the market. Hence, hardware segment in the components is expected to hold more than 40% of the market in 2034.
The hardware sector is dominating the market owing to proliferation of IoT devices as they are quite crucial for data collection and enabling communication. Miniaturization and integration of sensors and actuators are enabling the reality of smaller and more sophisticated devices.
| Application | Intralogistics |
|---|---|
| Value Share (2034) | 27.8% |
The intralogistics segment is expected to grow at a high CAGR of 16.1% over the forecasted period. As per FMI analysis, currently around 10% of companies use AI-driven applications in production environments meanwhile it is expected to reach approx. 70% by 2026. This will push the market value of intralogistics domain to new heights in the near future.
This rapid growth is expected as warehouses and logistics centers are turning to I/O-Link technology to ramp up the automation. Intralogistics operations thrive on up-to-the-minute data for smoother processes, keeping tabs on stock and making workflows better. With I/O-Link technology, sensors and devices provide detailed digital info, resulting in visibility boost and high level control.
| Industry | Automotive & Transportation |
|---|---|
| Value Share (2034) | 23.6% |
The Automotive & Transportation sector is expected to grow swiftly holding around 24% market share in the year 2034. Car companies are really getting into Industry 4.0 to make their factories super smart. They're using I/O-Link tech to connect all types of sensors and gadgets, making the process run smoother.
According to Harvard Business Review Survey, Around 81% of surveyed executives related to transportation sector believe that big data investments are success meanwhile around 49% of the surveyed executives claimed big data is achieving measurable results in the industry.
The data shows businesses are looking to invest further in technologies like I/O link to ease the industrial processes.
Key players operating in the I/O-link technology market are focusing on investing in research and development in order to innovate new technologies. The companies are also expanding their global reach for tapping the market that has yet to be dominated by other vendors.
Recent Industry Developments in I/O-Link Market
In terms of components, the industry is segmented into hardware, I/O-Link software tools and services.
In terms of application, the industry is segregated into handling & assembly automation, packaging, machine tools, intralogistics and others.
The industry is classified by pharmaceuticals, electronics & electricals, automation & transportation, food & beverages, energy & utilities and others.
Key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East and Africa (MEA) have been covered in the report.
The global I/O-link technology industry is projected to witness CAGR of 15.0% between 2024 and 2034.
The global I/O-link technology industry stood at USD 8,352.5 million in 2023.
The global I/O-link technology industry is anticipated to reach USD 38.056.7 million by 2034 end.
South Asia & Pacific is set to record the highest CAGR of 16.2% in the assessment period.
The key players operating in the global I/O-link technology industry include Emerson, SICK AG, Siemens, Phoenix Contact, Omron Corporation among others.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Pricing Analysis, By Product
5. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
6. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Component
7.1. Hardware
7.2. IO-Link Software Tools
7.3. Services
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
8.1. Handling and Assembly Automation
8.2. Packaging
8.3. Machine Tools
8.4. Intralogistics
8.5. Others
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Industry
9.1. Pharmaceuticals
9.2. Electronics & Electricals
9.3. Automotive & Transportation
9.4. Food & Beverages
9.5. Energy & Utilities
9.6. Others
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
10.1. North America
10.2. Latin America
10.3. East Asia
10.4. South Asia & Pacific
10.5. Western Europe
10.6. Eastern Europe
10.7. Middle East and Africa
11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
18. Sales Forecast 2024 to 2034 By Component, Application, Enterprise Size, Industry for 30 Countries
19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
20. Company Profile
20.1. ifm electronic GmbH
20.2. Pepperl+Fuchs
20.3. Baumer
20.4. Siemens
20.5. Rosemount (Emerson)
20.6. Phoenix Contact
20.7. SICK AG
20.8. Leuze electronic GmbH + Co. KG
20.9. Omron Corporation
20.10. Hans Turck GmbH & Co. KG
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I/O-Link Market
